How to Handle Right to Appraisal (RTA) for your Total Loss Claim

Introduction

Car or trailer got totaled? This article outlines exactly what you can expect in dealing with your insurance company through the matter, especially if they’ve given you an offer well below what your vehicle is actually worth. As the owner of AppraiseItNow, I’ve helped countless clients deal with their total loss claims. I’ve also recently totaled my vehicle (yikes!) so can speak to this process from a few angles. 

Luckily, state Departments of Insurance (DOIs) require many insurance companies to include what’s called a Right to Appraisal (RTA) clause that will give you the opportunity to hire an independent appraiser to help you get back what is owed. 

There’s a lot of confusion on how this process works, so let’s dive in!

If you’ve just gotten into an accident, call the police!

When I got into my accident a few months back, we first called the local police to document the accident and make sure this was properly registered online. They gave me a card with an ID Code for the incident and a link to Crashdocs.org where the accident report was published a few days later. 

It’s super important to have this registered online so you can get your documentation and share it with your insurance company. You definitely don’t want the incident to be questioned by your insurance company. 

First Step: File a Claim With Your Insurance Company

Once the dust settles and you are ready, I recommend putting in a claim with your insurance company. Understanding that some total loss claims might be a result of theft, loss, or natural disaster and not just collisions, try to report the claim as soon as you discover your car is no longer in your possession or operating. 

Search up your insurance company’s phone number online - whether this is a major insurance company like Progressive, State Farm, or Geico, or a more local, smaller one. 

Next: Work with Your Insurance Company Through The Claim

It’s possible that you might still be waiting for the police report to come back, or the insurance company is still processing your claim - that can take some time. 

Your insurance company might ask you for a few follow up details pertaining to the claim, which is expected. 

Based on your policy, your insurance carrier will get back to you with a proposed settlement amount. This is based on a number of factors: 

• Vehicle Damage
  
  • Repairs: For vehicles with damage but without a total loss, they will conduct an estimate of the repair cost of the damages, or reimburse you for your damage repairs after you’ve taken it to a location within their network. 
  • Total Loss: For vehicles that are deemed a total loss (“totaled”), the insurer will come up with an Actual Cash Value (ACV) of the vehicle based on its usage, condition, make, model, year, trim level, and other market data. 
    
    • Some policies go beyond ACV and provide Full Replacement Cost coverage. This means that instead of only reimbursing you for the car’s depreciated value, the insurer will pay the cost to replace it with a comparable new vehicle (or issue a payment equal to that cost), subject to policy limits. We’ll discuss this in more detail below!
• Your Insurace Policy
  
  • Basic ACV (most common) vs. Full Replacement Cost
    
    • As mentioned above, the type of value your insurer will use (ACV vs. Replacement Cost) will depend on the policy you have. See below for more detail!
  • Deductible 
    
    • This is the amount you must pay out of pocket before your insurance carrier starts paying.
    • Example: If the claim is for $20,000 and your deductible is $1,000, that means you would pay $1,000 and your insurer would pay $19,000. 
  • Per-Claim Limit
    
    • The maximum the insurer will pay for a single covered loss, based on the coverage type and limits in your policy.
    • Example: If your claim is in the amount of $75,000, and your maximum per claim is $50,000, then the insurance company would pay a maximum of $50,000 for that specific claim, and you would be responsible for the rest (that is if you wanted to replace your vehicle with something similar).
  • Total Policy Limit
    
    • The overall maximum the insurer will pay during your entire policy term.
    • Example: If your total policy limit is $100,000 and you’ve already been paid $80,000 for prior claims, then you would only have $20,000 left available for any future claims during that policy period.
  • Exclusions
    
    • Specific situations or types of damage not covered under your policy.
    • Example: If your policy excludes flood damage and your car is destroyed in a flood, the insurer will not provide any reimbursement, even if you have coverage for other types of damage. 
    • Personal story! When my car got into an accident, it was a hit & run and we could not find the other party. Since we did not have collision coverage, the insurance company was not able to reimburse us in any amount.
  • Additional Endorsements/Riders
    
    • Optional add-ons you may have purchased that expand your coverage.
    • Example: If you added rental reimbursement as an endorsement, your insurer may pay for a rental car while your vehicle is being repaired after an accident - something that wouldn’t normally be included under a basic policy.

Once you have this figure back from your carrier, you can decide if you feel it is fair or not. Specifically for total loss claims, if you do not feel it is fair, then you can exercise your Right to Appraisal (RTA).

Actual Cash Value (ACV) vs. Full Replacement Cost

When your vehicle is declared a total loss, the amount you receive from your insurer will depend heavily on the type of coverage built into your policy. Most auto insurance policies default to Actual Cash Value (ACV), but some stronger or upgraded policies may provide Full Replacement Cost coverage. Here’s what each means and how you can find out which you have.

Actual Cash Value (ACV)

• ACV is the standard method of settlement in most auto policies.
• It represents the fair market value of your car right before the loss; it’s essentially what a willing buyer would have paid for it that day.
• To calculate ACV, your insurer will consider factors like make, model, mileage, age, condition, trim, and market pricing for comparable vehicles.
• Age matters here, so the older your car, the lower the ACV will be.

Example: If your five-year-old SUV originally cost $35,000 but today similar models in your area sell for around $18,000, that $18,000 (minus your deductible) is likely what the insurer will pay.

Full Replacement Cost Coverage

• Full Replacement Cost coverage Far less common in auto than in homeowners insurance, but some carriers offer it for newer vehicles or as an optional rider.
• Instead of paying you the depreciated ACV, the insurer covers the cost of replacing your car with a brand-new comparable model, or pays out an amount equal to that cost (subject to your policy limits).
• Usually applies only if the car is relatively new (often under 1–2 years old) and you’ve purchased this coverage upfront.
  
  

Examples: ACV vs. Replacement Cost

Let’s say you’ve totaled your five-year-old SUV.

Actual Cash Value (ACV) Policy

• Original Purchase Price (5 years ago): $35,000
• Current Market Value (depreciated): $18,000
• Deductible: $1,000
• Settlement: $18,000 - $1,000 = $17,000 payout

Full Replacement Cost Policy

Instead of paying only the depreciated value, the insurer covers the cost to replace the SUV with a new, comparable model.

• Current Replacement Cost: $35,000
• Deductible: $1,000
• Settlement: $35,000 - $1,000 = $34,000 payout

With ACV, you walk away with enough to buy a five-year-old used SUV. With Replacement Cost, you walk away with enough to get a brand-new one.

Which One Do You Have?

• Basic policies: Almost always use ACV.
• Upgraded policies: May include “new car replacement” or “full replacement cost” coverage, but you’ll typically pay a higher premium for this protection.
  
  • It’s critical to check your declarations page or speak to your agent to confirm which applies, since this can mean thousands of dollars difference in a total loss settlement!

I Want to Exercise my Right to Appraisal - Now What?

We’ll use the following as an example case to walk through how this process works.

Let’s say you’ve totaled a 2020 Peterbilt 579 Semi-truck, and you had a standard policy that pays out based on Actual Cash Value (ACV). Your insurance company conducts its valuation and offers you $75,000.

But when you look at the market, you find that similar 2020 Peterbilts are selling for closer to $100,000, and you know it would cost that much to replace your vehicle with something comparable. What can you do?

This is when it might make sense to exercise your Right to Appraisal (RTA).

The Right to Appraisal Process (Step by Step)

1. Notify Your Insurance Company
   
   • You let your insurer know, in writing, that you disagree with their valuation and are invoking your Right to Appraisal under the policy.
   • In our example, you’d tell them you believe the truck is worth closer to $100,000 than their $75,000 figure.
2. Hire Your Own Appraiser
   
   • You select a qualified, independent appraiser who understands the market for semi-trucks like your Peterbilt.
     
     1. AppraiseItNow is an experienced provider of these insurance claim appraisal services.
   • This appraiser’s job is to determine a fair value for your car using market data, comparable sales, and professional judgment.
3. Provide Documentation
   
   • You give your appraiser all the relevant details: VIN, mileage, condition reports, photos, maintenance records, and the insurer’s valuation.
4. Insurer Hires Their Appraiser
   
   • The insurance company also hires an appraiser to represent their position.
   • Their appraiser may or may not stick closer to the $75,000 figure they initially offered. Sometimes both appraisers can come quite close in values!
5. Appraisers Negotiate
   
   • The two appraisers review the data and attempt to reach an agreement.
   • Maybe they settle in the middle — say $90,000 — as a fair value for your semi. But it’s also very well possible they can’t agree on an initial valuation. 
6. If No Agreement: The Umpire
   
   • If the two appraisers cannot agree, they select a neutral third party called an Umpire.
   • The umpire reviews both positions, conducts their own appraisal, and then makes the final call on the valuation.
   • For example, if one appraiser says $75,000 and the other says $100,000, the umpire might come back with a value at $92,500.
7. Final Award
   
   • Once two out of the three (your appraiser, the insurer’s appraiser, and the umpire) agree, that number becomes binding.
   • The insurer must honor the agreed-upon value under the Right to Appraisal clause in your policy.

What are the costs & ROI with exercising my Right to Appraisal?

Typical Costs for an Appraisal

Typical costs for an appraiser to handle the total loss claim process are anywhere from $400 to $700, which includes the appraisal and negotiation with the carrier’s appraiser and umpire.  

AppraiseItNow offers an affordable solution with an appraisal fee between $295 and $495 plus a flat rate of $200 to handle the negotiation, bringing the total cost to anywhere from $495 to $695. While many appraisers charge by the hour, flat pricing can give you the confidence and peace of mind you need before commencing the process. 

Return on Investment Example 

• Insurance Company Offer (ACV): $75,000
• Market Evidence (Comparable Trucks): $100,000
• Difference at Stake: $25,000

Now, let’s say you exercise your Right to Appraisal:

1. Appraisal Costs
   
   • AppraiseItNow Appraisal fee: $295 - $495
   • Negotiation flat fee: $200
   • Total Cost Range: $495 - $695
2. Appraisal Outcome
   
   • After negotiation or with the umpire’s input, your final award is set at $92,500 (midpoint between $75,000 and $100,000).
3. Net Benefit
   
   • Final Settlement: $92,500
   • Original Offer: $75,000
   • Increase in Payout: $17,500
   • Minus Appraisal Costs: $695 (worst case)
   • Net Gain: $16,805

ROI Calculation

• Increase in Payout: $17,500
• Cost: $695
• ROI: ~25x your investment!

Even after paying for the appraisal process, you walk away with over $16,000 more in your pocket. That’s why exercising the Right to Appraisal can be a great financial decision if you believe your insurer’s offer is too low.

Conclusion

Dealing with a totaled car, truck, or trailer is stressful enough; the last thing you want is to be underpaid for your loss. As you’ve seen, insurance companies don’t always get the number right the first time. The good news is that you’re not stuck with their initial offer. Thanks to the Right to Appraisal, you have a built-in way to push back, bring in your own expert, and secure a fairer settlement.

From my own experience - both personally and through helping clients at AppraiseItNow - I’ve seen how powerful this process can be. Sometimes it means recovering thousands (or tens of thousands) more than what the insurance carrier first put on the table. And while there are modest costs involved, the ROI can be enormous, especially when the insurer’s number is clearly below market.

So if you find yourself in this situation, don’t just settle because you feel like you have no choice. Review your policy, understand your coverage, and remember that you may have the Right to Appraisal on your side. Exercising that right could make all the difference in getting back what you truly deserve.